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Stockland, which purchased a 19.9 per cent stake in Australand in March, said on Wednesday it would “consider its options and provide an update in due course".

Stockland is being advised by Citigroup, Merrill Lynch and UBS, while Australand is being advised by Fort Street Advisors, Macquarie Capital and King & Wood Mallesons.

Frasers has appointed Deutsche Bank and Standard Chartered Bank as its advisers.

Frasers is backed by Thailand’s third-richest man,
Charoen Sirivadhanabhakdi
, through his company TCC Assets. Frasers has an existing Australian pipeline of five projects, including its landmark $2 billion Central Park project in Sydney.

Frasers Centrepoint chief executive
Lim Ee Seng
said the company’s proposal would “catapult" Frasers into being one of Australia’s leading real estate companies with a portfolio of scale and quality.

“Australia is a core market for Frasers," he said. “The group chose to enter the Australian market over a decade ago due to favourable fundamentals including its transparent regulatory environment, strong corporate governance, as well as its deep and mature property market."

Australand shareholders value the offer per security at $4.61 as Australand’s distribution for the second half of fiscal 2014 is included.

Australand chairman
Paul Isherwood
said the board concluded that the conditional Frasers proposal would deliver a “compelling value outcome" for Australand shareholders and was superior to the final and conditional proposal that had been received from Stockland.

“Accordingly, the board has determined to progress the proposal with Frasers to determine whether an offer that is capable of acceptance can be presented to Australand security holders," Mr Isherwood said.

Australand added some heat to the takeover activity last week by lifting its own earnings guidance.

That guidance was now expected to increase by 20-25 per cent – and anticipated a $76 million upgrade of its investment portfolio, which would increase net assets per security by 3¢ to $3.68 per security.

Shares in Stockland and Australand rose 1.8 per cent and 5.6 per cent respectively.

Frasers Centrepoint was down 4.1 per cent in late trading to $S1.84 ($1.57).